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The New Expansion Was Aimed at Increasing the Storage and Distribution Space of the Logistics Company
Localfrio, a company in the integrated logistics sector, has invested around R$ 50 million in a new distribution center in Itajaí, Santa Catarina. The new center will feature 7,400 square meters and will be dedicated to storage operations, making it the company’s second distribution center in the municipality of Santa Catarina, which now totals over 10,000 square meters available in the region. The investments for the new distribution center are planned for the next four years.
“We are increasing our capacity by investing in a new distribution center in Itajaí, Santa Catarina. The investment is in line with our strategic planning, aimed at expanding our service portfolio and further verticalizing our participation with clients. (…) It is a center fully capable of meeting various logistics operations and fulfilling our clients’ demands, offering them complete solutions that add value to their logistics chain,” reports Piero Simione, commercial director of Localfrio.
The company believes that the new distribution center will reach 100% of its storage capacity in the first half of 2023, potentially increasing Localfrio’s revenue in Santa Catarina by 20%. It is estimated that importers and industry will be the largest users of this type of warehouse.
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WHAT IS LOGISTICS?
More About Logistics: The Challenges of Overcoming the Lack of Structure for Logistics in Brazil
Logistics is one of the major bottlenecks in the Brazilian economy. The country faces serious problems with lack of infrastructure, especially in highways, railways, and ports. The logistics sector is a strategic area for most companies. In Brazil, logistics costs are high compared to other countries, making producers less competitive in both domestic and international markets.
According to André Pompeu, who is responsible for asset development and management at Finvest in Minas Gerais, it is not just the precarious infrastructure that generates losses. “Logistics goes far beyond that. To reduce these costs, the first step is to know them: inventory, storage, and transportation, in addition to other costs that are often overlooked by managers,” he warns.
The movement of materials, for example, can account for up to 25% of production costs, including stock expenses, while packaging costs can represent 30% of the final cost of a product. Therefore, it is essential to adopt strategies and take actions to overcome this challenge, so that productivity and quality in operations are not compromised.
Technology has already proven to be a great ally in various business processes, being fundamental for increasing productivity, optimizing production, and making even more accurate decisions. Within logistics, this is no different, as, in addition to minimizing the number of failures, technological solutions can reduce logistics costs by up to 30%, depending on their purpose.
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